If the currency rises or changes, how does the debtor repay his debt?
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The questioner : Your Eminence, regarding the increase in the value of the currency for the creditor.
The Shaykh : What?
The questioner : The creditor borrows from a debtor, and then the currency rises. Is it obligatory for him to pay in the currency after the rise, or before the rise? May Allah bless you.
The Shaykh : You mean the currency changed?
The questioner : Yes.
The Shaykh : If the currency changes, one looks at the value of the original currency at the time of the change. One looks at the value of the original currency at the time of the change. For example, if he agreed with him on one hundred riyals of a certain type, and then that type was abolished, it is said: What is its value at the time of abolition?
The questioner : It is the debt, O Shaykh.
The Shaykh : Yes.
The questioner : The debt.
The Shaykh : The debt. For example, describe to me the issue that is in your mind right now?
The questioner : For example, so-and-so borrows from another so-and-so. Ahmad borrows from Muhammad a sum of one thousand dollars. Then, after that, the dollar currency, when the debt is repaid a month later, the currency had risen, so it became, for example, one thousand and two hundred.
The Shaykh : You mean the value of the dollar rose.
The questioner : Yes, exactly.
The Shaykh : Okay. He must hand over the dollar, whatever its value may be. Let us suppose that at the time of the contract, the value of the dollar was ten, and then it rose to twenty. He must give him the dollar, even if it is twenty. Likewise, conversely, if the value of the dollar decreased, does the creditor demand the value of the dollar? No, he gives him the dollar, even if it is half the value. Yes.
The Shaykh : What?
The questioner : The creditor borrows from a debtor, and then the currency rises. Is it obligatory for him to pay in the currency after the rise, or before the rise? May Allah bless you.
The Shaykh : You mean the currency changed?
The questioner : Yes.
The Shaykh : If the currency changes, one looks at the value of the original currency at the time of the change. One looks at the value of the original currency at the time of the change. For example, if he agreed with him on one hundred riyals of a certain type, and then that type was abolished, it is said: What is its value at the time of abolition?
The questioner : It is the debt, O Shaykh.
The Shaykh : Yes.
The questioner : The debt.
The Shaykh : The debt. For example, describe to me the issue that is in your mind right now?
The questioner : For example, so-and-so borrows from another so-and-so. Ahmad borrows from Muhammad a sum of one thousand dollars. Then, after that, the dollar currency, when the debt is repaid a month later, the currency had risen, so it became, for example, one thousand and two hundred.
The Shaykh : You mean the value of the dollar rose.
The questioner : Yes, exactly.
The Shaykh : Okay. He must hand over the dollar, whatever its value may be. Let us suppose that at the time of the contract, the value of the dollar was ten, and then it rose to twenty. He must give him the dollar, even if it is twenty. Likewise, conversely, if the value of the dollar decreased, does the creditor demand the value of the dollar? No, he gives him the dollar, even if it is half the value. Yes.